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A Japanese EXPORTER has a 1,200,000 receivable due in one year. Estimate the cost today...

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A Japanese EXPORTER has a 1,200,000 receivable due in one year. Estimate the cost today of an options strategy that will eliminate the exchange rate risk. Listed Options Euro (62,500) Yen (W12,500,000) Strike $1.25=1.00 $1.00 - $100 Puts $0.008 per $0.006 per 100 Calls $0.0075 per $0.008 per 100 O $21,000 $21,600 $18,000 $18,600

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